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<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#002060">I am wrapping up one of these now. The only real estate excise tax due on this transaction would likely be on the value of any improvements that the client built
on the property and actually owned. Otherwise, the definition of "sale" under RCW 82.45.010 does not appear to include a lease such as the one being transferred here. If the buildings already existed, I think your client is exempt from paying any real estate
excise tax on the value of those buildings.<o:p></o:p></span></p>
<p class="MsoNormal"><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#002060"><o:p> </o:p></span></p>
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<p class="MsoNormal" style="margin-bottom:12.0pt"><b><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#222A35;mso-ligatures:none">Mark B. Anderson<br>
</span></b><span style="font-size:10.0pt;font-family:"Arial",sans-serif;color:#222A35;mso-ligatures:none">ANDERSON LAW FIRM PLLC<br>
821 Dock St Ste 209 PMB 4-12<br>
Tacoma, Washington 98402<br>
+1 253-327-1750<br>
+1 253-327-1751 (fax)<br>
<a href="mailto:marka@mbaesq.com"><span style="color:blue">marka@mbaesq.com</span></a><br>
<a href="http://www.mbaesq.com/"><span style="color:blue">www.mbaesq.com</span></a><b><o:p></o:p></b></span></p>
<p class="MsoNormal" style="margin-bottom:12.0pt"><b><span style="font-size:10.0pt;font-family:"Arial Narrow",sans-serif;color:#002060;mso-ligatures:none">CONFIDENTIALITY NOTICE<br>
</span></b><span style="font-size:10.0pt;font-family:"Arial Narrow",sans-serif;color:#002060;mso-ligatures:none">This transmission is confidential and is intended solely for the use of the individual named recipient. It may be protected by the attorney-client
privilege, work product doctrine, or other confidentiality protection. If you are not the intended recipient, or the person responsible to deliver it to the intended recipient, be advised that any dissemination, distribution, or copying of this communication
is prohibited. If you have received this transmission in error, please immediately notify the sender via e-mail or by telephone at (253) 327-1750 that you have received the message in error, and then delete it. Thank you.</span><span style="font-size:7.5pt;font-family:"Arial",sans-serif;color:#002060;mso-ligatures:none"><o:p></o:p></span></p>
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<p class="MsoNormal"><b><span style="mso-ligatures:none">From:</span></b><span style="mso-ligatures:none"> wsbarp-bounces@lists.wsbarppt.com <wsbarp-bounces@lists.wsbarppt.com>
<b>On Behalf Of </b>Joshua Grant<br>
<b>Sent:</b> 02/09/2023 5:44 PM<br>
<b>To:</b> wsbarp@lists.wsbarppt.com<br>
<b>Subject:</b> [WSBARP] REET on transfer of leasehold improvements?<o:p></o:p></span></p>
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<p class="MsoNormal"><o:p> </o:p></p>
<p class="MsoNormal"><a name="OLE_LINK1"></a><a name="OLE_LINK2"><span style="mso-bookmark:OLE_LINK1"><span style="mso-ligatures:none">My client sold his business, including improvements etc. which he only has a leasehold interest in. Total sale was $650,000.
The parties didn’t allocate anything to real estate.. only equipment and that was $150,000. (I didn’t assist with this closing). The buildings are on U.S. Bureau Of Reclamation ground on Banks Lake. The county had a value on buildings at $157,620. The County
Treasurer somehow hears about it and tells client he owes REET. This is my client’s statement:<o:p></o:p></span></span></a></p>
<p class="MsoNormal"><span style="mso-bookmark:OLE_LINK2"><span style="mso-bookmark:OLE_LINK1"><span style="color:#1F497D;mso-ligatures:none">Josh<o:p></o:p></span></span></span></p>
<p class="MsoNormal"><span style="mso-bookmark:OLE_LINK2"><span style="mso-bookmark:OLE_LINK1"><span style="color:#1F497D;mso-ligatures:none">Spoke in person to XXXXX,Treasurer, in Court House.<o:p></o:p></span></span></span></p>
<p class="MsoNormal"><span style="mso-bookmark:OLE_LINK2"><span style="mso-bookmark:OLE_LINK1"><span style="color:#1F497D;mso-ligatures:none">He had given me the TeraScan T2 Doc.[</span></span></span><span style="mso-bookmark:OLE_LINK2"><span style="mso-bookmark:OLE_LINK1"><span style="mso-ligatures:none">which
shows a value on some buildings and camp sites at $157,600]<span style="color:#1F497D"><o:p></o:p></span></span></span></span></p>
<p class="MsoNormal"><span style="mso-bookmark:OLE_LINK2"><span style="mso-bookmark:OLE_LINK1"><span style="color:#1F497D;mso-ligatures:none">He indicated that paying on the 157,620 would help to NOT get audited by Dept of Revenue.
<o:p></o:p></span></span></span></p>
<p class="MsoNormal"><span style="mso-bookmark:OLE_LINK2"><span style="mso-bookmark:OLE_LINK1"><span style="color:#1F497D;mso-ligatures:none">Also gave me a blank “REAL ESTATE CONTRACT” to record with REET.affid.<o:p></o:p></span></span></span></p>
<p class="MsoNormal"><span style="mso-bookmark:OLE_LINK2"><span style="mso-bookmark:OLE_LINK1"><span style="mso-ligatures:none">So aside from practicing law without a license, my client has been encouraged to sign a RE contract with his purchaser, to commit
him to sell real estate he doesn’t own, and record it and of course pay on a dreamt up RE value that the County came up with. Again the agreed upon allocation is only $120,000 and that is on all equipment which includes boats and outboard motors etc. beyond
the RE improvements. For the reason that it would help him avoid being audited??!!<o:p></o:p></span></span></span></p>
<p class="MsoNormal"><span style="mso-bookmark:OLE_LINK2"><span style="mso-bookmark:OLE_LINK1"><span style="mso-ligatures:none">I tried to see on line at department of revenue a discussion/form on REET on sale of leaseholds.. without success.<o:p></o:p></span></span></span></p>
<p class="MsoNormal"><span style="mso-bookmark:OLE_LINK2"><span style="mso-bookmark:OLE_LINK1"><span style="mso-ligatures:none">Has anyone run into this before?<o:p></o:p></span></span></span></p>
<p class="MsoNormal"><span style="mso-bookmark:OLE_LINK2"><span style="mso-bookmark:OLE_LINK1"><span style="mso-ligatures:none"><o:p> </o:p></span></span></span></p>
<p class="MsoNormal"><span style="mso-bookmark:OLE_LINK2"><span style="mso-bookmark:OLE_LINK1"><span style="mso-ligatures:none">Josh<o:p></o:p></span></span></span></p>
<p class="MsoNormal"><span style="mso-bookmark:OLE_LINK2"><span style="mso-bookmark:OLE_LINK1"><o:p> </o:p></span></span></p>
<p class="MsoNormal"><span style="mso-bookmark:OLE_LINK2"><span style="mso-bookmark:OLE_LINK1"><o:p> </o:p></span></span></p>
<p class="MsoNormal"><span style="mso-bookmark:OLE_LINK2"><span style="mso-bookmark:OLE_LINK1"><b><span style="font-size:18.0pt;color:#004080;mso-ligatures:none">Joshua F. Grant</span></b></span></span><span style="mso-bookmark:OLE_LINK2"><span style="mso-bookmark:OLE_LINK1"><span style="font-size:14.0pt;color:#004080;mso-ligatures:none"><br>
</span></span></span><span style="mso-bookmark:OLE_LINK2"><span style="mso-bookmark:OLE_LINK1"><span style="font-size:14.0pt;color:black;mso-ligatures:none"><img border="0" width="166" height="34" style="width:1.7291in;height:.3541in" id="Picture_x0020_2" src="cid:image001.png@01D93D50.1AE60320"></span></span></span><span style="mso-bookmark:OLE_LINK2"><span style="mso-bookmark:OLE_LINK1"><span style="font-size:14.0pt;color:black;mso-ligatures:none"><br>
</span></span></span><span style="mso-bookmark:OLE_LINK2"><span style="mso-bookmark:OLE_LINK1"><span style="color:#004080;mso-ligatures:none">P. O. Box 619<br>
Wilbur, WA 99185<br>
509 647 5578<o:p></o:p></span></span></span></p>
<p class="MsoNormal"><span style="mso-bookmark:OLE_LINK2"><span style="mso-bookmark:OLE_LINK1"></span></span><a href="mailto:jgrant@advocateslg.com"><span style="mso-bookmark:OLE_LINK2"><span style="mso-bookmark:OLE_LINK1"><span style="mso-ligatures:none">jgrant@advocateslg.com</span></span></span><span style="mso-bookmark:OLE_LINK2"><span style="mso-bookmark:OLE_LINK1"></span></span></a><span style="mso-bookmark:OLE_LINK1"></span><span style="mso-bookmark:OLE_LINK2"></span><span style="color:#004080;mso-ligatures:none"><o:p></o:p></span></p>
<p class="MsoNormal"><o:p> </o:p></p>
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